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Tequila sips:

Although they're seldom mentioned in the literature about tequila, there are other drinks aside from pulque, mezcal and tequila made from agaves, some even from the blue agave, and some even using tequila, including numerous liqueurs - collectively known as elixir de agave. Some of these are even marked aņejo and reposado and may be limited-production, premium drinks.

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Tequila in Canada

Canada has been behind the times, tequila-wise, compared to the
rest of the world. In our nation of hockey viewers and beer
drinkers, the wealth of new and premium tequilas that began
to blossom in the USA in the mid-1990s has never taken root in
Canada to anywhere near the same degree. This is for several
reasons.

First, Canadians are much further away from Mexico, with another
intervening country between us, and the travel costs are that much
greater. Canadians are more likely to travel to Florida than to Mexico.
About 1 million Canadians visit Mexico every year, compared to 14
million who go to the USA. So our exposure to Mexican culture and
traditions is comparatively lower.

Second, while Canada has a growing Latin American population, it is
still marginally small compared to the USA's, so the influence of Latin - and
specifically Mexican - culture, cuisine, and tastes on the rest of the
population is much less here. Cinco de Mayo is virtually unknown in
Canada as an event or festival.

Perhaps more important is the way Canada handles alcohol sales.
Almost every province controls the sale of alcohol through a provincial
(publicly owned) liquor control board (LCB - Alberta is the sole
exception: liquor sales and distribution are privatized). That means
there are no competitive, national or even provincial chains looking for
exclusive deals, new products to position themselves against the
competition, so there is less commercial pressure to look at new or
emerging products, or to take risks. In most provinces, all alcohol is
sold only at government-run and staffed outlets.

And prices are the same
at all provincial outlets since discounting and sales are
restricted or nonexistent, so there is no price competition among
outlets.

Not all Canadians are happy about the government control over their
liquor sales, and there are movements - small, but determined - to
privatize liquor sales. In an article for the frontier Centre for Public
Policy, Manitoba's governmental control of liquor sales as, "Dowdy,
puritanical, patronizing, not to mention expensive and inconvenient, are
apt adjectives for our remaining blue laws and the entrenched monopoly
that enforces them."

The article goes on to point to the success of the Alberta model,
where liquor sales were privatized in 1993: "For real reform,
Manitobans need only look to Alberta, which privatized liquor retailing
in 1993. The initial benefit to Alberta, an injection of $51million into
provincial coffers from the sale of assets, was followed by significant
investment in new, taxpaying enterprises. Over the last ten years, the
number of private liquor stores multiplied, as did product lists and
employment in the industry, not to mention the expanded consumer
convenience of locations and store hours. The price of liquor in real
terms remained the same, and Alberta’s government deliberately kept the
tax bite neutral. Red herrings raised by detractors, among them
increases in alcoholism, consumption by minors and crime, have not
materialized."

Alcohol sales are a major source of provincial and federal revenue,
as well Ontario took in $1.2 billion from liquor sales from its LCBO in
2006, up $57.5 million from the previous year). That encourages LCBs and the federal government to heap taxes
on top of imported prices. Typically a bottle of tequila sells for
30-40% more than the Mexican price, and may be considerably more. Even
mixtos sell for $50 CAD a bottle and more. A mid-level premium bottle
may sell for $100 or more.

Such pricing can discourage consumers from experimenting with premium
products that sell in the stratospheric level of single malt scotch and
fine cognacs.

On the plus side of this equation, LCBs are large so they have
tremendous buying power, plus they have a captive market since no one
competes against them. That means they can position a product well for
exposure by stocking it in hundreds, even thousands of stores. The
LCBO - Ontario
- is the world's largest alcohol-buying agency, with more than
4,500 outlets. So the potential to make an impact with any brand or
product is great.

The LCBO says that, as of 2007, tequila has seen a net growth of 12%
in sales (2006 sales of $10.8 million), 11.8% in volume. The increase
over the past five years is a whopping 76.5% in sales, which suggests
Canadian consumers are more aware of quality tequilas than ever before.

To cater to that need, the LCBO has slowly expanded its line of
tequilas. LCBO's Vintage outlets may offer a few brands (Sauza Hornitos, Hussongs, Tenoch, Herradura blanco, Cuervo Tradicionel), or be able to order a few select brands for you, but expect to pay a hefty price ($30-$60 Cdn). Sadly, the LCBO usually has only three or four 100% agave brands
available at any time, the rest being rather low-quality mixtos, so you may have to shop across the border for the better brands
until they get a wider selection locally.

But getting into any of the government-owned monopolies has proven
frustrating to many tequila manufacturers, some of whom have simply
given up trying to get into Canada. They cite poor product
understanding, disinterest, sluggish bureaucracy, red tape, and the
necessity of repeating the same steps at every provincial agency.

Still, the news isn't all bad. The LCBO reports a compound annual
growth rate of 12% on net sales, 11.8% in litres. Total increase over 5
years: 76.5% net sales, 75.0% litres; dollar increase: net sales of
$10.8 million. As one source told me, "We believe we will see continued
growth from tequila, and that customers' interest will grow as they
continue to explore the spirits category, possibly beginning to look for
alternatives to vodka and rum."

Canadian customers are more educated and are looking for higher end
tequilas, and are aware of the varying types. Premium tequilas are
growing extremely well, and, an LCBO representative wrote, "the price
point does not seem to create much resistance among connoisseurs and
people interested in quality products."

However, the LCBO's larger volume still comes from the mixtos. But
that may change: the LCBO says it will continue to expand its selection
of premium tequilas, and will be looking specifically to fill in the
mid-price range with 100% agave tequilas.

As for the new flavoured tequilas, the LCBO is cautiously optimistic:
"We have carried several 'flavoured tequilas' in the past, and we
believe there is an opportunity here. Once we start to see success in
this area in the U.S., we think our consumers will be more aware of
these products, and be interested in them."

Mezcals are even more limited here. Since mid-summer most tequilas have been getting significant price hikes - 60-100% across Canada. Read my report on tequila in Canada (Sept. 2000) at
Tequila Aficionado.

The Canadian Government's own take on tequila is particularly out of
touch with trends and the international markets. In a paper on the
Agri-Food
Past, Present and Future Report, presented in China, in January,
2007, the author, Ben Berry, wrote,

Stout, lager, rum, tequila and hard liquor are generally
perceived to be drinks of the older generation.

To be fair, the author has told me he was writing about the Hong Kong
market, not Canada, but I can't believe the former British colony would
be a couple of decades behind trends in the rest of the world.

Recognizing the need to educate not merely consumers, but everyone in
the hospitality industry,in 2006, the International Academy of Tequila,
which provides training to bartenders, buyers, producers and consumers,
announced it was opening a branch in the USA. Negotiations started in
early 2007 about opening a Canadian branch.